Aditya Birla Sun Life share plummets 8% after Q3 results; here's why

Aditya Birla Sun Life AMC share price dipped 8.45 per cent at Rs 588.90 a piece on the BSE in Tuesday’s intraday trade. This came after investors booked profits in the stock despite the company, a subsidiary of Aditya Birla Capital, reporting a 7.3 per cent increase in net profit for the third quarter ending December 31, 2024. 

 

The company's net profit stood at Rs 224.5 crore, compared to Rs 209.3 crore during the same quarter last year. Revenue from operations also grew 30.3 per cent, reaching Rs 445.1 crore, up from Rs 341.5 crore in Q3FY24.

 

The company’s Ebitda surged 41.2 per cent, totaling Rs 274.3 crore in Q3FY25, up from Rs 194.3 crore in the same period last year. The Ebitda margin remained stable at 61.6 per cent, matching the previous year’s level. 

 

 

Aditya Birla Sun Life AMC also reported growth in its quarterly average assets under management (QAAUM), which saw a 23 per cent year-on-year increase, reaching Rs 4 lakh crore by the end of December 2024. The mutual fund segment alone contributed to this growth, with a 23 per cent rise in QAAUM to Rs 3.83 lakh crore. 

 

Notably, equity mutual fund QAAUM grew by 32 per cent, reaching Rs 1.79 lakh crore, while the equity portion of the mix increased from 44 per cent in Q3FY24 to 47 per cent in Q3FY25. 

 

Additionally, individual monthly AAUM grew 19 per cent Y-o-Y, reaching Rs 1.97 lakh crore, with individual investors now comprising 52 per cent of the total mutual fund AUM.

 

The company also saw robust growth in systematic investment plans (SIPs), with monthly SIP flows rising by 38 per cent Y-o-Y, reaching Rs 1,382 crore in December 2024. The number of accounts participating in SIPs also grew, with 4.35 million accounts in December 2024. The total number of new SIPs (including STP) for Q3FY25 reached around 670,000, marking an impressive 185 per cent Y-o-Y increase.

 

Operating profit for the quarter was Rs 260 crore, reflecting a 42 per cent increase from the previous year, driven by strong performance in mutual funds and SIP inflows.

 

Aditya Birla Sun Life has a total market capitalisation of Rs 17,410.25 crore.  Its shares are listed at a price to earnings multiple of 20.25 and at an earning per share of Rs 30.86.

 

At 11:35 AM, the stock price of the company fell by 5.67 per cent at Rs 606.80 a piece on the BSE. By comparison, the BSE’s Sensex was up 0.86 per cent to 76,015.50 level.